BP has announced a significant surge in its first-quarter profits, which more than doubled to $3.2 billion (£2.4 billion) in the initial three months of 2026. This substantial increase in underlying replacement cost profit, BP’s preferred measure, exceeded market expectations of $2.67 billion and comes amidst a backdrop of heightened oil price volatility driven by the ongoing Middle East Iran war.
The FTSE 100 energy firm’s latest financial disclosure reveals profits soared by over 130% from $1.38 billion (£1.02 billion) in the same period last year. A key driver for this performance was an “exceptional” contribution from the company’s oil trading operations, which capitalised on the turbulent market conditions.
The conflict, which commenced on 28 February 2026, with US and Israeli airstrikes on Iran and subsequent retaliatory actions, has caused significant disruption to global energy supplies, including the critical Strait of Hormuz. Brent crude, the international benchmark, has seen prices escalate dramatically, rising above $100 a barrel in early March for the first time in four years and reaching approximately $110-111 a barrel on April 28, 2026.
The announcement has drawn sharp criticism from campaigners who accuse BP of profiting at the expense of ordinary households. These households are currently grappling with soaring fuel prices at the pumps and are anticipated to face further increases in energy bills when the UK’s energy price cap is next updated on 1 July. The cap, currently £1,641 per year for a typical household, is forecast by analysts to rise significantly, potentially exceeding £1,900, due to rising wholesale gas prices influenced by the Middle East crisis.
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Mike Childs, Head of Science, Policy and Research at Friends of the Earth, commented on the situation, stating: “Just as we saw in 2022 following Russia’s invasion of Ukraine, fossil fuel giants are quids in when global instability drastically inflates fuel prices. But again, it’s ordinary people who pay the price when soaring energy prices threaten to plunge the UK into an even deeper cost of living crisis.”
The End Fuel Poverty Coalition has reiterated its call for a windfall tax on companies benefiting from the energy crisis. Simon Francis, the campaign group’s co-ordinator, remarked: “These astronomical profits are a startling reminder that when conflict drives up the price of oil and gas, energy companies profit and households pay.”
Meg O’Neill, who assumed the role of BP’s new chief executive on 1 April 2026, acknowledged the challenging environment. She stated: “The teams across BP are playing their part to keep oil, gas and refined products flowing during an incredibly challenging time – focused on maintaining safe, reliable and cost-efficient operations. We are working with customers and governments to get fuel where it’s needed, helping minimise disruption and the impact it can have on people’s lives.”
